U.S. · Tax forms
Schedule 1 line 16, self-employed retirement plans.
What the line is for, where the IRS sends you to figure it, and where the total goes.
Line 16 (“Self-employed SEP, SIMPLE, and qualified plans”) is an adjustment to income, in Part II of Schedule 1. The instructions say that if you were self-employed or a partner you may be able to take this deduction, and they point to Pub. 560 (or Pub. 517 for ministers) for how to figure it.
Look up a Part II line
Result
Schedule 1 Line 16 at a glance, 2025 edition
| Line | Label on the 2025 form | Note |
|---|---|---|
| Line 15 | Deductible part of self-employment tax. Attach Schedule SE | Taken from line 13 of Schedule SE |
| Line 16 | Self-employed SEP, SIMPLE, and qualified plans | The deduction on this page; see Pub. 560 or, for ministers, Pub. 517 |
| Line 17 | Self-employed health insurance deduction | A separate adjustment; not part of line 16 |
| Line 18 | Penalty on early withdrawal of savings | A separate adjustment |
| Line 20 | IRA deduction | A separate adjustment for traditional IRAs |
| Line 26 | Add lines 11 through 23 and 25. These are your adjustments to income | Enter here and on Form 1040, line 10 |
What the instructions actually say
The line 16 instruction is short: if you were self-employed or a partner, you may be able to take the deduction, and you should see Pub. 560 (or Pub. 517 if you were a minister). The limits and the way the deduction is figured are in those publications, not on the Schedule 1 itself, so this page does not compute a limit.
Where the deduction goes
Line 16 is one of the Part II amounts added on line 26 (“Add lines 11 through 23 and 25”). Line 26 is entered on Form 1040, line 10, and Form 1040, line 11a then subtracts it from total income to give adjusted gross income.
Why it sits next to lines 15 and 17
Self-employed filers often have three adjustments together: the deductible part of self-employment tax (line 15), the retirement plan deduction (line 16) and the health insurance deduction (line 17). They are separate lines with separate rules.
Worked example
Priya is a freelance designer. Her adjustments are $4,200 on line 15, $6,000 on line 16 and $3,600 on line 17, with nothing else. Line 26 is 4,200 + 6,000 + 3,600 = $13,800, entered on Form 1040, line 10. Names and amounts are made up, and $6,000 is not a limit.
More line pages in this set
Related lines: Schedule 1 Line 3, Form 1040 Line 11a.
Sources
- Instructions for Form 1040 and 1040-SR (2025): Page last reviewed or updated May 7, 2026. Read November 2, 2026.
- Schedule 1 (Form 1040) 2025 Read November 2, 2026.
Tax year 2025 forms and instructions (Instructions for Form 1040 page last reviewed or updated May 7, 2026). Line labels were read from the IRS form PDFs posted on the date read; line numbers and labels change between tax years, so check them against the form for your tax year. Names in worked examples are made up.
Frequently asked questions
What is Schedule 1 line 16?
It is the adjustment to income for self-employed SEP, SIMPLE, and qualified plans, in Part II of Schedule 1.
Who can take it?
The instructions say that if you were self-employed or a partner you may be able to take it. See Pub. 560, or Pub. 517 if you were a minister.
Where do I find the limit?
In Pub. 560 (or Pub. 517 for ministers). The Schedule 1 and its instructions do not state the limit.
Where does line 16 go next?
It is added with the other Part II lines on line 26, and line 26 is entered on Form 1040, line 10.
Is this the same as the IRA deduction?
No. The IRA deduction is its own adjustment on Schedule 1, line 20.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.